Canada to rely on US shale for ethane – consultant

HOUSTON (ICIS)--Canadian petrochemical producers will rely on ethane from US shale to curb declines of their own supplies of the feedstock, a consultant said on Thursday.

Canadian producers are already lining up pipeline agreements to secure US supplies, said John Stekla, director of olefin studies for Chemical Market Associates Inc (CMAI).

Stekla made his comments during CMAI's World Petrochemical Conference.

US ethane production is expected to rise as the nation develops its shale-gas reserves. Canada, meanwhile is experiencing the opposite trend.

Western Canadian ethane supplies peaked in 2007 and are expected to decline through 2015, according to forecasts from Purvin & Gertz, an energy consultancy.

According to CMAI, the pipeline projects could offset the loss, however, bringing ethane supplies near 2007 levels. Meanwhile, Canada could develop its own shale-gas reserves, which could further increase ethane supplies.